Point of view: how Black Friday exploits South African consumers' psychology

Black Friday has become a cultural phenomenon in South Africa, a retail ritual that promises unbeatable deals and thrilling midnight hunts. But beneath the glittering discounts lies a sobering reality: for many households, this annual shopping spree is a financial trap disguised as opportunity.

Salem Nyati, consumer financial specialist at Momentum Group, calls it what it is: “a masterclass in consumer psychology designed to trigger immediate gratification and override rational decision-making.”

I’ve seen this firsthand. A few years ago, I joined the Black Friday rush with a carefully curated list and a modest budget. But by midday, I had abandoned both. The thrill of “limited time offers” and “only 10 left” banners pulled me into a frenzy of impulse buying. I walked away with items I didn’t need and a credit card bill I couldn’t ignore. That experience taught me that the real cost of Black Friday isn’t just financial, it’s psychological.

According to PayInc, Black Friday 2024 saw a 75% spike in transaction volumes at midnight compared to the previous Thursday, though slightly down from 2023. This suggests that while enthusiasm remains high, fatigue may be setting in. Yet, the broader context is alarming: South Africa’s household food basket reached R5,380 in August 2025, and 63.5% of households are struggling to afford essentials. In this climate, reckless spending isn’t just unwise, it’s dangerous.

Nyati warns that retailers deploy three potent psychological tactics:

• The discount effect: loss aversion makes us fear missing out more than we value saving. A 30% discount feels like a loss if ignored, even when the item isn’t needed.
• FOMO: “While stocks last” messaging creates urgency, pushing consumers to act before thinking.
• Scarcity marketing: “Only 50 left” taps into primal instincts, overriding logic and budget constraints.

These tactics aren’t accidental, they’re engineered to exploit our vulnerabilities. And they work. TransUnion Africa reported a 45% surge in personal loan inquiries between October and November 2024. Many South Africans are borrowing to participate in Black Friday, turning short-term gratification into long-term debt.

Lee Naik, CEO of TransUnion Africa, notes that restraint in spending may reflect constraint, not confidence. Most South Africans cannot absorb a financial shock. Nyati echoes this, urging consumers to redefine victory, not as scoring the best deal, but as preserving financial stability.

Black Friday’s timing is particularly cruel. It lands just before the December holidays and the dreaded “Janu-worry” period, when school fees, uniforms, and textbooks drain household budgets. Some of us have to travel back home, and in my case, to Gqeberha, for the December holidays. Even with inflation easing to 2.8%, price levels remain high. Unemployment is stagnant, and easy access to credit during sales events can lead to a debt spiral.

Nyati offers practical strategies to resist the hype:

• Pay Yourself First: Prioritise savings and essentials before spending on deals.
• Set a Budget: Use the “today, tomorrow, next week” framework to guide spending.
• Use Loyalty Programs: Stretch your rand with eBucks, Discovery Miles, and store rewards.
• Plan Beyond November: Anticipate December and January expenses to avoid a financial hangover.

Since my Black Friday misstep, I’ve adopted a new approach. I treat it like any other day in my financial calendar. I plan, I budget, and I ask myself: “Will this purchase serve me in three months?” If the answer is no, I walk away. That discipline has helped me build a small emergency fund and avoid the January panic.

Black Friday can offer genuine savings, but only if approached with clarity and restraint. As Nyati concludes, “Let wisdom, not impulse, guide your shopping decisions. Your future financial self will thank you for it.”

In a country where financial resilience is no longer optional, we must learn to shop with purpose, not panic. Black Friday should be a celebration of smart choices, not a gateway to debt.

* Maleke is the editor of Personal Finance.

PERSONAL FINANCE